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Nu Skin Enterprises Inc (NYSE:NUS)
Inventory to Revenue
0.61 (As of Mar. 2014)

Inventory to revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Nu Skin Enterprises Inc's inventory for the quarter that ended in Mar. 2014 was $411 Mil. Nu Skin Enterprises Inc's revenue for the three months ended in Mar. 2014 was $671 Mil. Nu Skin Enterprises Inc's inventory to revenue ratio for the quarter that ended in Mar. 2014 was 0.61.

Nu Skin Enterprises Inc's inventory to revenue ratio for the quarter that ended in Mar. 2014 increased from Dec. 2013 (0.33) to Dec. 2013 (0.61)

An increase in inventory to revenue ratio from one quarter to the next indicates that one of the following is happening:

1. investment in inventory is growing more rapidly than revenue
2. revenue are dropping
No matter which situation is causing the problem, an increase in the inventory to revenue ratio may signal an oncoming cash flow problem.

Days inventory indicates the number of days of goods in sales that a company has in the inventory. Nu Skin Enterprises Inc's days inventory for the three months ended in Mar. 2014 was 350.43.

Inventory can be measured by Days Sales of Inventory (DSI). Nu Skin Enterprises Inc's days sales of inventory (DSI) for the three months ended in Mar. 2014 was 55.69.

Inventory turnover measures how fast the company turns over its inventory within a year. Nu Skin Enterprises Inc's inventory turnover for the quarter that ended in Mar. 2014 was 0.26.


Definition

Inventory to Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Nu Skin Enterprises Inc's Inventory to Revenue for the fiscal year that ended in Dec. 2013 is calculated as

Inventory to Revenue (A: Dec. 2013 )=Inventory (A: Dec. 2013 ) / Revenue (A: Dec. 2013 )
=339.669 / 3176.718
=0.11

Nu Skin Enterprises Inc's Inventory to Revenue for the quarter that ended in Mar. 2014 is calculated as

Inventory to Revenue (Q: Mar. 2014 )=Inventory (Q: Mar. 2014 ) / Revenue (Q: Mar. 2014 )
=410.668 / 671.061
=0.61

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

An increase in inventory to revenue ratio from one quarter to the next indicates that one of the following is happening:

1. investment in inventory is growing more rapidly than revenue
2. revenue are dropping
No matter which situation is causing the problem, an increase in the inventory to revenue ratio may signal an oncoming cash flow problem.

Likewise, a decrease in the inventory to revenue ratio from one quarter to next indicates that one of these is occurring:

1. investment in inventory is shrinking in relation to revenue
2. revenue are increasing
No matter which situation is causing the reduction in the inventory to revenue ratio, either one suggests that business's inventory levels and its cash flow are effectively managed.

More Related Terms:

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Nu Skin Enterprises Inc's Days Inventory for the three months ended in Mar. 2014 is calculated as:

Days Inventory=Inventory (Q: Mar. 2014 )/Cost of Goods Sold (Q: Mar. 2014 )*Days in Period
=410.668/106.644*91
=350.43

2. Inventory can be measured by Days Sales of Inventory (DSI).

Nu Skin Enterprises Inc's Days Sales of Inventory for the three months ended in Mar. 2014 is

Days Sales of Inventory (DSI)=Inventory (Q: Mar. 2014 )/Revenue (Q: Mar. 2014 )*Days in Period
=410.668/671.061*91
=55.69

3. Inventory Turnover measures how fast the company turns over its inventory within a year.

Nu Skin Enterprises Inc's Inventory Turnover for the quarter that ended in Mar. 2014 is calculated as

Inventory Turnover=Cost of Goods Sold (Q: Mar. 2014 ) / Average Inventory (Q: Mar. 2014 )
=106.644 / 410.668
=0.26

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Related Terms

Inventory, Revenue, Days Inventory, Cost of Goods Sold, Inventory Turnover


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Nu Skin Enterprises Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
inventory2rev 0.080.080.080.090.090.080.070.060.060.11

Nu Skin Enterprises Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
inventory2rev 0.230.260.210.260.250.280.260.270.330.61
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